| home equity line of credit increase |
|
|
|
|
|
rb5505
New Member
Cash: $ 0.65
Posts: 3
Joined: 16 Mar 2011
|
| home equity line of credit increase |
 |
|
are there any disadvantages to raising our unused home equity line of credit from 25k to 109k? since they goofed by not adding both our names to the paperwork a couple years ago, our credit union is offering the increase at no charge because it's the maximum available to us. we got it just for emergencies and currently don't have plans for anything above the 25k. i'd heard it's smart to secure all you can since you never know if sometime later we might not be able to get it. the rate is a variable 3.5%. are there any reasons to not increase it? will it effect our excellent fico scores?
see the credit union's email below....
"I was wondering if you would like to keep your Home Equity Line of Credit at a $25,000 limit, or if you would like to increase it. Based on your home’s tax-assessed value, we could establish a credit line up to $109,000. If you were contemplating remodeling your home, or paying off some unwanted debt perhaps a higher limit would benefit you".
thanks.
|
Wed Mar 16, 2011 8:41 pm |
|
|
coaster
Senior Advisor
Cash: $ 1357.80
Posts: 6686
Joined: 11 Oct 2005
Location: Wisconsin
|
It will help your credit score and it will hurt your ability to borrow.
Go figure. Credit scoring is a paradox.
Details on the www.myfico.com site.
|
|
Thu Mar 17, 2011 6:49 am |
|
|
littleroc02us
Moderator
Cash: $ 205.35
Posts: 1015
Joined: 09 Feb 2009
|
I'm sorry are you considering raising your Home equity to use as an EF account? How does that make any sense? So, if you lose your job or have a car break down your solution is to go further into debt. Not a good idea!
Romans 13:8 “Owe no man any thing, but to love one another: for he that loveth another hath fulfilled the law.”
|
|
Mon Mar 21, 2011 6:10 pm |
|
|
rb5505
New Member
Cash: $ 0.65
Posts: 3
Joined: 16 Mar 2011
|
quote:
Originally posted by littleroc02us
I'm sorry are you considering raising your Home equity to use as an EF account? How does that make any sense? So, if you lose your job or have a car break down your solution is to go further into debt. Not a good idea!
we intend only to use it for important home improvements or home repairs and nothing else. i was just wondering if having the additional available would be good? or is this a case where we should say, thanks but no thanks?
|
|
Tue Mar 22, 2011 1:49 am |
|
|
littleroc02us
Moderator
Cash: $ 205.35
Posts: 1015
Joined: 09 Feb 2009
|
Your never going to get me to say it's o.k. to borrow to improve a house. I don't borrow money unless it's for a mortgage. My wife and I have remodeled our entire house with cash. We saved and renovated a room and then we saved again and did another until they were all complete. Now we have a beautiful house with no debt.
Romans 13:8 “Owe no man any thing, but to love one another: for he that loveth another hath fulfilled the law.”
|
|
Tue Mar 22, 2011 4:25 pm |
|
|
rb5505
New Member
Cash: $ 0.65
Posts: 3
Joined: 16 Mar 2011
|
thanks for the feedback.
since the cr union didn't put both our names on the original 2 yr old paperwork, they are re-doing the heloc at no charge ($120 saved). they're also starting the 10 yr lock period over and giving us the same variable rates (min 3% & 9.9% max) that we got 2 yrs ago. 3% is the current rate, if we had a balance. the current variable range is 3.99--14.99%. we changed the line from 25k to 50k.
|
|
Tue Mar 22, 2011 9:10 pm |
|
|
littleroc02us
Moderator
Cash: $ 205.35
Posts: 1015
Joined: 09 Feb 2009
|
Good luck with that?????
Romans 13:8 “Owe no man any thing, but to love one another: for he that loveth another hath fulfilled the law.”
|
|
Wed Mar 23, 2011 2:23 pm |
|
|
smithhooper
New Member
Cash: $ 1.00
Posts: 5
Joined: 06 Apr 2011
|
A Home Equity loan is a lump sum of money borrowed up front.You make scheduled payments, but you do not get to reuse that equity. Its just a loan.They're just following the lead of US credit card companies who are arbitrarily jacking up interest rates on existing balances.
bass guitar
|
|
Wed Apr 06, 2011 6:02 am |
|
|
tomibraniste
Member
Cash: $ 2.00
Posts: 10
Joined: 07 Apr 2011
|
nice, you can try good luck !
Instant cash advance
|
|
Thu Apr 07, 2011 3:51 pm |
|
|
savana
Full Member
Cash: $ 19.20
Posts: 92
Joined: 19 Aug 2010
|
quote:
Originally posted by smithhooper
A Home Equity loan is a lump sum of money borrowed up front.You make scheduled payments, but you do not get to reuse that equity. Its just a loan.They're just following the lead of US credit card companies who are arbitrarily jacking up interest rates on existing balances.
It is much better to understand what will be the things that are necessary and is needed to look for the higher interest rates.
http://www.capitalareahomebuyers.com/tell-us-about-your-property.html
|
|
Mon Apr 11, 2011 10:43 am |
|
|
reversemortgageinfo
Member
Cash: $ 2.20
Posts: 10
Joined: 05 Apr 2011
|
| a home equity loan is similar to a reverse mortgage |
|
|
Instead of a home equity loan, homeowners 62 and older may want to consider a reverse mortgage. It uses the equity you've built up in your home and turns it into cash, similar to a home equity loan.
However, you can usually get more money with a reverse mortgage and you don't have to pay it back until you leave the home.
Stephanie Jameson
Reverse Mortgage Information
--------------------------------
National Reverse Mortgage
New York Reverse Mortgage
|
|
Fri Apr 22, 2011 10:15 pm |
|
|
savana
Full Member
Cash: $ 19.20
Posts: 92
Joined: 19 Aug 2010
|
I have to get all the details related to reverse mortgage and what I have to do applying for it. Actually it is necessary to understand all the benefits and then accordingly, applying for it further.
http://www.capitalareahomebuyers.com/tell-us-about-your-property.html
|
|
Tue Apr 26, 2011 12:20 pm |
|
|
kate032
Preferred Member
Cash: $ 22.35
Posts: 111
Joined: 25 Feb 2011
Location: Michigan
|
quote:
Originally posted by littleroc02us
Your never going to get me to say it's o.k. to borrow to improve a house.
In general, I agree, and specifically for the op, based on what information he provided. However, for repairs that are more essential than aethestic, it isn't always a terrible idea to get a second mortgage. For instance, it would be wise to replace a front door that has inadequate insulation and is a thief's dream door.
|
|
Fri Jul 29, 2011 3:07 pm |
|
|
littleroc02us
Moderator
Cash: $ 205.35
Posts: 1015
Joined: 09 Feb 2009
|
quote:
Originally posted by kate032
quote:
Originally posted by littleroc02us
Your never going to get me to say it's o.k. to borrow to improve a house.
In general, I agree, and specifically for the op, based on what information he provided. However, for repairs that are more essential than aethestic, it isn't always a terrible idea to get a second mortgage. For instance, it would be wise to replace a front door that has inadequate insulation and is a thief's dream door.
I still don't agree with that because what you do is if it's an emergency like the water heater blows up or you need to replace a door due to a break in, then you use your emergency fund that is for emergencies, if it isn't an emergency then you save up the money and pay in cash. This is how my wife have operated in our household and what's great about it is that we have no debt and no debt is no worries.
Romans 13:8 “Owe no man any thing, but to love one another: for he that loveth another hath fulfilled the law.”
|
|
Fri Jul 29, 2011 3:15 pm |
|
|
|
